Ballard announces new Long-Term Supply Agreement with NFI and purchase order for 100 fuel cell engines for bus deployments in North America

Rhea-AI Summary

Ballard Power Systems (BLDP) signs Long-Term Supply Agreement with NFI Group Inc. (NFI) for fuel cell powered buses, marking a new phase in their partnership. NFI has placed its first purchase order for a minimum of 100 FCmove®-HD+ modules for delivery in 2024, primarily produced in Ballard's Bend, Oregon facility with Buy America compliance. The modules will power New Flyer's next generation Xcelsior CHARGE FC™ hydrogen fuel cell buses for deployment across the US and Canada, including California, Manitoba, Nevada, New York, Ohio, and Pennsylvania.

Insights

Market Research Analyst

The new Long-Term Supply Agreement (LTSA) between Ballard Power Systems and NFI Group Inc. represents a significant strategic partnership in the clean energy transportation sector. By securing a commitment for a minimum purchase of 100 FCmove®-HD+ modules, Ballard is not only ensuring a steady revenue stream but is also solidifying its position as a key supplier in the North American hydrogen fuel cell bus market. The focus on deployment-level volumes indicates a scaling up of operations that could lead to economies of scale and potentially lower production costs over time.

The mention of 'Buy America compliance' is an important aspect of this deal, as it aligns with current U.S. regulations and policies favoring domestic production, which may give Ballard a competitive advantage in securing further contracts within the U.S. Additionally, the diversification of deployment across multiple states and provinces showcases the broadening acceptance and demand for zero-emission transportation solutions, reflecting a shift in the transportation industry's priorities towards sustainability.

Financial Analyst

From a financial perspective, the LTSA between Ballard Power Systems and NFI could have a tangible impact on Ballard's future revenue streams and profitability. The agreement provides a level of certainty in Ballard's order book, which is beneficial for financial forecasting and investor confidence. The market's reaction to such news typically hinges on the perceived value and longevity of the contract, as well as Ballard's capability to meet the demand both in terms of quantity and quality of the fuel cell modules.

Investors should monitor Ballard's operational capacity to fulfill this agreement, especially considering the planned delivery in 2024. The successful execution of this contract could lead to subsequent orders and reinforce Ballard's market leadership. However, any delays or issues in production could negatively affect the company's reputation and stock performance.

Energy Sector Analyst

This LTSA is a clear indication of the growing momentum in the transition to zero-emission transportation, particularly in the niche market of hydrogen fuel cell buses. Ballard's FCmove®-HD+ modules powering New Flyer's Xcelsior CHARGE FC™ buses represent advanced technology in the field of hydrogen fuel cells, which are favored for their range and efficiency compared to battery-electric buses.

Hydrogen fuel cells are becoming increasingly relevant in heavy-duty transportation due to their high energy density and quick refueling capability. The industry-wide move towards clean energy sources, spurred by environmental regulations and societal demand, positions companies like Ballard at the forefront of a burgeoning market. The successful deployment of these buses could serve as a case study for further adoption of fuel cell technology in other transportation sectors and geographies.

VANCOUVER, BC and WINNIPEG, MB, Jan. 3, 2024 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP); (TSX: BLDP) today announced the signing of a new Long-Term Supply Agreement ("LTSA") with NFI Group Inc. ("NFI"); (TSX: NFI); (www.nfigroup.com), a leading independent bus and coach manufacturer and a leader in electric mass mobility solutions in North America and Europe. The agreement marks a new phase in the established partnership between Ballard and NFI, focused on deployment-level volumes of fuel cell powered buses across all of NFI's major brands including New Flyer, Alexander Dennis, and MCI.

As part of the LTSA, NFI has placed its first purchase order under the agreement for a minimum of 100 FCmove^®-HD+ modules for planned delivery in 2024. The modules will primarily be produced in Ballard's Bend, Oregon facility with Buy America compliance, and will power New Flyer's next generation Xcelsior CHARGE FC™ hydrogen fuel cell buses for deployment across the US and Canada, including California, Manitoba, Nevada, New York, Ohio, and Pennsylvania.

"This agreement is the next step in our multi-decade partnership with Ballard and a key component in advancing our leading fuel cell bus offerings," said David White, Executive Vice President, Supply Management, NFI. "By working with Ballard across numerous bus products in multiple jurisdictions, we have been able to leverage best practices and generate design, engineering and sourcing synergies. With growing demand for fuel cell buses, we are excited to continue this partnership as we drive the transition to zero-emission transportation."  

"We are proud NFI (and subsidiaries New Flyer, Alexander Dennis, and MCI) has chosen Ballard as their committed partner for the next phase of growth in the fuel cell bus market," said David Mucciacciaro, Ballard Chief Commercial Officer. "We believe New Flyer is well positioned to deliver deployment scale volumes of fuel cell buses, particularly in the US market, where operators increasingly prefer hydrogen fuel cell powered buses for their range, short refueling times, high-availability, and cost-effective infrastructure requirements." 

About Ballard Power Systems

Ballard Power Systems' (NASDAQ: BLDP;TSX: BLDP) vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels, and stationary power. To learn more about Ballard, please visit www.ballard.com.

This release contains forward-looking statements concerning anticipated product deliveries, customer deployments, and market adoption. These forward-looking statements reflect Ballard's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such forward-looking statements are based on Ballard's assumptions relating to its financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand.

These statements involve risks and uncertainties that may cause Ballard's actual results to be materially different, including general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans and achieving and sustaining profitability. For a detailed discussion of these and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form. Readers should not place undue reliance on Ballard's forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward-looking statements, other than as required under applicable legislation.

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SOURCE Ballard Power Systems Inc.

FAQ

What is the latest announcement from Ballard Power Systems (BLDP) and NFI Group Inc. (NFI)?

Ballard Power Systems (BLDP) has signed a Long-Term Supply Agreement with NFI Group Inc. (NFI) for fuel cell powered buses, marking a new phase in their partnership. NFI has placed its first purchase order for a minimum of 100 FCmove®-HD+ modules for delivery in 2024.

Where will the FCmove®-HD+ modules be produced?

The FCmove®-HD+ modules will primarily be produced in Ballard's Bend, Oregon facility with Buy America compliance.

Which company will the modules power and where will they be deployed?

The modules will power New Flyer's next generation Xcelsior CHARGE FC™ hydrogen fuel cell buses for deployment across the US and Canada, including California, Manitoba, Nevada, New York, Ohio, and Pennsylvania.

What is the significance of this agreement for NFI Group Inc. (NFI)?

The agreement signifies a new phase in the partnership between Ballard Power Systems and NFI Group Inc., focused on deployment-level volumes of fuel cell powered buses across all of NFI's major brands, including New Flyer, Alexander Dennis, and MCI.

What are the benefits of hydrogen fuel cell powered buses?

Operators increasingly prefer hydrogen fuel cell powered buses for their range, short refueling times, high-availability, and cost-effective infrastructure requirements.